This study explores innovative and alternative means that local governments are using to cope with increases in federal and state mandates, some of which are unfunded.

Due to state and federally mandated programs, local governments are increasingly resorting to innovative and alternative means of performing their functions because taxpayers are becoming more resistant to tax increases. Certain conditions need to exist for governmental innovation to be possible. This work explores these situations, using case studies in local government to discuss in detail innovative programs in risk management, zoning, stormwater management, public safety, housing, and governmental format.